Latest News for Philippine Defense

DND to keep an eye on investors keen on Hanjin

The Department of National Defense (DND) will monitor the firms and other parties that have expressed interest to invest in Hanjin Heavy Industries and Construction Philippines (HHIC-Phil).

Still, DND Secretary Delfin Lorenzana said they would defer to the government’s economic team regarding the entry of possible investors in the bankrupt shipbuilder. 

“We defer to the economic team in this area. But we (are) interested to know who are coming to invest,” he said, noting that HHIC-Phil is near the Philippine Navy’s major docking and anchorage area of its large naval vessels.

“After all, Subic Bay is also a major docking and anchorage of our big ships. We will monitor who are interested to invest,” Lorenzana added.

Earlier, HHIC-Phil said it has a total of USD1.3 billion outstanding loans, of which USD400 million it owes to Philippine banks and USD900 million to South Korean lenders.

The Subic Bay Metropolitan Authority said HHIC-Phil filed a petition last Tuesday at the Regional Trial Court in Olongapo City “to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.

The petition is to seek help from the government to find investors that can take over the operation of the HHIC-Phil shipyard in Subic, as well as to help its employees who have carried the brunt of the company’s financial woes.

In December 2018, the company laid off more than 7,000 workers.#